The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a significant expansion in Nigeria’s refining sector. This includes the issuance of nine Licenses to Establish (LTEs), seven Licenses to Construct (LTCS), and four Licenses to Operate (LTOS) for modular refineries. This initiative aims to enhance local production and reduce dependence on imports.
Engr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory (NMDPRA) revealed this during his keynote address at the 18th OTL Africa Downstream Energy Week summit in Lagos, themed “Alliances for Growth.”
He stated that the NMDPRA has revised and consolidated its regulations through strategic engagements with industry stakeholders to simplify the regulatory framework and enhance compliance in the sector.
Ahmed noted that Nigeria has benefited from innovative policies implemented over the past eighteen months, driven by the ambitious reforms of President Bola Tinubu. He said that these changes have transformed the sector into a more attractive investment hub, encouraging profitable ventures in oil and gas.
The NMDPRA boss emphasized Nigeria’s goals of reaching 3 million barrels per day in crude oil production, utilizing 10 billion standard cubic feet of gas daily, and boosting domestic refining capacity to position the country as a net exporter of petroleum products.
The NMDPRA Chief highlighted that Nigeria’s petroleum industry has the essential frameworks for growth and success.
He reiterated the NMDPRA’s dedication to backing President Tinubu’s reform initiatives in the midstream and downstream sectors by enhancing regulatory processes, including streamlined licensing, permits, and authorizations.
He said, “In the past year, the NMDPRA has revised and consolidated regulations through strategic engagements with industry stakeholders to streamline the regulatory framework for easier compliance.
“This effort is complemented by the issuance of relevant guidelines and the automation of processes to strengthen regulatory clarity and enhance compliance.”
He maintained that the gas sector is also rapidly developing with a licensed processing capacity of 16 billion standard cubic feet per day, a transportation capacity of 5 billion, and a distribution capacity of 1.5 billion standard cubic feet daily.
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He stated that the NMDPRA is actively working to enhance quality and safety in the industry, strategically engaging stakeholders and offering regulatory support for key government initiatives, such as the Decade of Gas and Pi-CNG programs, to fully achieve the goals of the Petroleum Industry Act (PIA).
Ahmed therefore announced plans to champion the development and adoption of a uniform gas transportation code.
He said, “This initiative aligns with the progression of the West African Gas Pipeline (WAGP) to Morocco, aiming to facilitate effective natural gas movement across the regions.
He emphasized that the authority would explore mechanisms to establish an association for Energy Regulators in West Africa.
“This association could potentially integrate with existing regional regulators from East and South Africa to form a pan-African Energy Regulators Association, streamlining regulations and policy formulations across the continent.
Additionally, he advocated for Compressed Natural Gas (CNG) as an alternative fuel to Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).
“Several interventions are being implemented to support the expansion of CNG infrastructure through the Pi-CNG, the Decade of Gas Program, and the MDGIF.
“We are progressively expanding auto-CNG infrastructure, with plans for most retail outlets to install CNG add-ons to accommodate the growing number of CNG vehicles nationwide.”
“The NMDPRA is committed to working closely with stakeholders to accelerate the necessary expansion of CNG infrastructure,” he said.
He highlighted that NMDPRA is working closely with key stakeholders to develop new safety and compliance policies, especially in the rapidly growing CNG sector.
Regarding government efforts to enhance the affordability and availability of cooking gas, Ahmed noted that NMDPRA has been collaborating with stakeholders like Chevron Nigeria Limited and Mobil Producing Nigeria to promote the domestic use of Liquefied Petroleum Gas (LPG) produced locally, akin to Nigeria LNG Limited, which has domesticated 100% of its butane production since 2022.
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